- Food Empire (SGX:F03) reported a record FY22 which blew past ours and consensus estimates. 4Q22 revenue grew 29% y-o-y while NPAT surged 22.6% y-o-y, driven by strong demand from Russia, CIS markets and India. Food Empire's dividend also doubled y-o-y to S$0.044.
- - Read this at SGinvestors.io -
- With a positive outlook and resilience despite the ongoing Russia-Ukraine conflict, we maintain BUY recommendation on Food Empire.
Record year – more to come
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- We expect demand to remain strong in Russia and the CIS region and stronger growth from Vietnam as well as the expansion of its no-dairy creamer facility which is expected to begin commercial production by 4Q23.
- In India, spray dry and new freeze dry coffee plants continue to operate at full capacity but should yield higher margins due to cost reductions on the back of freight cost normalisation.
- We also expect the next two quarters to be much stronger y-o-y as the conflict started midway during 1Q22.
Dividends double + share buybacks to continue
- Read more at SGinvestors.io.
